Bond Yields Consolidate Amid External Pressures; Rupee Softens 📈

The secondary bond market started the week with yields holding steady as investors maintained a defensive "wait-and-see" stance. Market sentiment was primarily anchored by geopolitical tensions in the Middle East and elevated crude oil prices. • Secondary Bond Market: Activity remained subdued with thin volumes, though supported by intermittent block trades. Key traded maturities included: 01.08.26: 8.40% 15.03.28: 9.50% 01.07.28: 9.65% 15.06.29: 9.92% – 9.97% 15.10.29: 10.00% 01.07.30: 10.16% The total transacted volume for Treasury Bonds/Bills reached Rs. 9.50 Bn on April 17. • Market Liquidity: The system recorded a net liquidity surplus of Rs. 112.44 Bn. Financial institutions deposited Rs. 138.44 Bn at the Central Bank’s SDFR (7.25%), while SLFR (8.25%) withdrawals totaled Rs. 26.00 Bn. Weighted average rates for call money and Repo stood at 7.67% and 7.70% respectively. • Forex Market: The Sri Lankan Rupee (LKR) saw slight depreciation against the USD, closing at Rs. 316.40/90 compared to the previous close of Rs. 316.55/70. The total USD/LKR traded volume stood at US$ 56.75 Mn. _Data based on provisional reports from Wealth Trust Securities and CBSL._